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What happens if my Airline goes bust?

Since Monarch went bust, leaving thousands of people stranded, it is a subject at the fore front of everyone’s minds when booking holidays.

What’s shocking is the information that has come to light regarding travel insurance – 41% of travel insurers will not cover you in this instance. (Source)

Luckily for those stranded abroad, the CAA commissioned their largest repatriation by bringing them home at no extra charge for the two weeks following the announcement. Plus many customers who had not travelled yet were protected by their ATOL protection and others were able to claim back costs via their credit card provider also.

Many customers however, were not aware they could not get cover via their travel insurance. This is why we always advise customers to check their policy wording, to ensure the cover meets their needs. At Holidaysafe, we offer cover for Financial Failure of an airline across all of our policies (either as standard or as an optional extra). Going forward, hopefully more people will look into what they are actually covered for to ensure they don’t get caught in a sticky situation.

Although the thought of reading through policy wordings sounds extremely boring, if it means you can confirm cover for eventualities like this, we think it’s worth it! It’s also good practise to know what you have paid for, and what to do if you need to claim – although many people never need to.